Credit Suisse staff see deferred bonuses frozen by Swiss government via IrishTimesBiz
Credit Suisse staffers will be waiting to see how long the suspension lasts and the permanent status of the lender’s contingent capital awards. These were meant to mirror risky bonds that were wiped out in the takeover but had yet to be written down to zero before the Swiss statement landed, a person familiar with the matter said earlier Tuesday.
The CCA awards were worth about 360 million francs at the end of 2022. One of the conditions of the awards is that the instruments have no value in the event of a collapse of the bank. But the nature of the rescue — couched as a private takeover — left some wondering if it was feasible the weekend’s events may not trigger this.Thousands of managing directors and director-level staff at Credit Suisse have received at least part of their bonus in contingent capital units in recent years.
The lender stated in its annual report that the contingent capital awards carry “risks similar” to other contingent capital securities it issues.
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